Late bloomer: Revenue will decline, hampered by import competition

The five years to 2018 have been challenging for the Plant and Flower Growing industry, with revenue decreasing. The influx of low-cost cut flower imports from Colombia and Ecuador, combined with a rising trade-weighted index has challenged the domestic industry's price competitiveness in recent years. This increase has served to make US exports comparatively more expensive on foreign markets and imports less expensive on domestic markets. Despite this premium, however, rising exports to Canada and the Netherlands have helped mitigate further declines in industry revenue during the period. Over the next five years IBISWorld forecasts that industry revenue will return to slight growth, as demand from florists is expected to recover with anticipated increases in consumer spending...purchase to read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 13-18
-0.7%
Forecast Growth 18-23
Profit
Employment
163,403
Businesses
45,619
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The influx of low-cost cut flower imports from Colombia and Ecuador has challenged the domestic industry’s price competitiveness
  • Increased efficiency in transportation has led to nationwide price competition
  • Imports will likely continue to hamper the industry, albeit to a lessening degree
  • Industry Report - Industry SWOT Analysis Chapter

    The Plant and Flower Growing industry is in decline. Increased competition from importers has constrained domestic floriculture growth, stunting growth in both industry revenue and industry value added. Industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to grow an annualized 2.6% over the 10 years to 2023. Meanwhile, US GDP is forecast to grow at an annualized rate of 2.2%. This industry is in decline, despite the disparity in IVA, growth. During the current period, this statistic has been biased upward by rising wages and profitability. The number of enterprises is expected to fall from 34, 991in 2013 to an expected 32,210 by the end of 2023. Com...purchase to read more.

    Additional Insights for the Plant & Flower Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plant & Flower Growing Industry are

  • Economies of scale
  • Production of premium goods/services
  • Ability to alter goods and services produced in favor of market conditions
  • IBISWorld analysts also discuss how external factors such as Demand from florists and Per capita disposable income in the Plant & Flower Growing industry impact industry performance..

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    What's in this report

    What is the Plant & Flower Growing Industry?

    Establishments in this industry grow nursery plants, such as trees and shrubs; flowering plants, such as foliage plants, cut flowers, flower seeds and ornamentals; and short rotation woody trees, such as Christmas trees and cottonwoods. These plants can either be grown under cover or in an open field.

    Industry Products
  • Nursery stock crops
  • Annual bedding and garden plants
  • Potted flowering plants
  • Foliage plants
  • Potted herbaceous perennials
  • Cut flowers and cut cultivated greens
  • Propagative floriculture materials
  • Short rotation woody trees
  • Industry Activities
  • Floriculture production
  • Nursery and tree production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from florists
  • Per capita disposable income
  • Demand from nursery and garden stores
  • Demand from flower and nursery stock wholesaling
  • Trade-weighted index

  • Current Performance
  • Blooming imports
  • Transportation and consolidation
  • Pushing daisies
  • Chart: Revenue Growth

  • Industry Outlook
  • Imports versus exports
  • Consolidation and automation
  • Profit and potential
  • Table: Plant & Flower Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plant & Flower Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Plant & Flower Growing
  • Flower & Nursery Stock Wholesaling
  • Nursery & Garden Stores
  • Supermarkets & Grocery Stores
  • Florists

  • Key Selling Industries
  • Crop Services
  • Farm Supplies Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Fertilizer Manufacturing
  • Pesticide Manufacturing
  • Plant & Flower Growing
  • Tractors & Agricultural Machinery Manufacturing
  • Water Supply & Irrigation Systems

  • Products & Services
  • Nursery stock crops
  • Annual bedding and garden plants
  • Potted flowering plants
  • Potted herbaceous perennials
  • Foliage plants
  • Propagative floriculture materials
  • Short rotation woody trees
  • Cut flowers and cut cultivated greens
  • Chart: Plant & Flower Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Flower and nursery stock wholesalers
  • Intra-industry sales
  • Retailers
  • Other
  • Exports
  • Chart: Major Market Segmentation for the Plant & Flower Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages and depreciation
  • Utilities, rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Plant & Flower Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plant & Flower Growing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Plant & Flower Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Plant & Flower Growing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Genetically Modified (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • Organic Agricultural Production
  • Farming that does not involve the use of artificial chemicals, pesticides, fertilizers or genetically modified organisms.
  • Propagative
  • Plants and flowers that are used as inputs into further nursery, floriculture production and agriculture production.
  • Tensiometer
  • A control irrigation system in nurseries. Soil moisture is monitored in the plant root, allowing producers to give a specific plant species the correct moisture level it requires.
  • Trellis
  • Latticework used to support climbing plants.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Plant & Flower Growing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Plant & Flower Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Plant & Flower Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Plant & Flower Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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